Reside in west Liverpool (4)
I believe the answer is:
live
'reside' is the definition.
(I know that reside is a kind of live)
I cannot understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for live that I've seen before include "Be - positive" , "active" , "A . . . . wire is a highly energetic person" , "Exist in evil" , "Present in person, not recorded" .)